2C1G ACE MANUFACTURING PLANS TO PRODUCE TWO PRODUCTS, PRODUCT C AND P...
200.
CSO: 2C1a
LOS: 2C1g
Ace Manufacturing plans to produce two products, Product C and Product F, during the
next year, with the following characteristics.
Product C
Product F
Selling price per unit
$10
$15
Variable cost per unit
$ 8
$10
Expected sales (units)
20,000
5,000
Total projected fixed costs for the company are $30,000. Assume that the product mix
would be the same at the breakeven point as at the expected level of sales of both
products. What is the projected number of units (rounded) of Product C to be sold at the
breakeven point?
a.
2,308 units.
b.
9,231 units.
c.
11,538 units.
d.
15,000 units.